Getting A Credit or Debit Card for Your Child

You may be planning to help your child get either a credit card or a debit card, especially if college is on the horizon. Both of these types of cards are convenient for paying bills, in emergencies and in other situations where cash isn’t practical. Each type has advantages and disadvantages. Here are the basics.

Credit Cards
The main advantage of credit cards is that they let the user build a credit history. Students who establish a good credit record in college will probably have an easier time later on when they try to rent an apartment or take out a car loan.

The downside of credit cards, of course, is the danger that a student will use the card irresponsibly and accrue a large debt. Those inexpensive visits to a fast-food joint can add up to a big bill.

It’s easy to forget that a credit card charge is a loan that has to be repaid, usually with interest. Another minus: missed or late payments will damage your child’s fledgling credit profile. Read More....

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